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The annual demand, ordering cost, and the inventory carrying cost rate for a certain item are D = 600 units, S = $25/order and I
The annual demand, ordering cost, and the inventory carrying cost rate for a certain item are D = 600 units, S = $25/order and I = 30% of item price. Price is established by the following quantity discount schedule. What should the order quantity be in order to minimize the total annual cost?
what is the minimum cost for this order quantity?
Quantity | 1-49 | 50-999 | 1000 and up |
Price | $5.00 | $4.50 | $4.10 |
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